Prada in debt

Last week reports emerged that the Italian luxury clothing label Prada is suffering financially. In 2003 the company lost almost GBP 1 billion in its UK market, and also suffered plummeting sales in 2004. Turnover in 2004 dropped from GBP 24.4 million to GBP 23.5 million.

Luxury goods analysts attribute the label's troubles partially to the stock market volatility following the 11 September terrorist attacks. The label invested heavily in the UK market, including a recent, expensive refurbishment of its London store. Attempts at curbing its losses by trying once again to float the business are well documented.